The question "can I refuse credit insurance" is currently very relevant for many borrowers. However, some ask this question before applying for a loan, while others ask after. In this case, the situations are equal.
Why is insurance coverage necessary?
Today, financial institutions offer various lending programs, ranging from ordinary consumer to mortgages. Some may think that with a consumer loan, insurance is completely unnecessary, and they are looking for various ways to refuse credit insurance. However, refusing, you must understand that at this moment you become a risky borrower for the bank.
Insurance must be specified in advance
In many cases, all the answers to this question are already spelled out in the loan agreement and insurance contract. Therefore, after signing in most cases, it is too late to think whether it is possible to refuse credit insurance. Therefore, when choosing a loan program, it is necessary to familiarize yourself with the loan agreement in advance and consult with a manager on all issues. First of all, you need to find out the conditions of insurance and the size of the premium on all loan terms.
If the loan agreement says that insurance is not necessary, find out whether it is possible to refuse credit insurance immediately before signing the agreement, and how this refusal will affect the size of the interest rate.
Avoid Property Insurance Fails
According to many lawyers, according to Article 935 of the Civil Code of the Russian Federation, obligations related to insurance of acquired property may be imposed on a citizen. Article 31 of the Law "On Mortgage" stipulates that the borrower must provide insurance coverage for his apartment (purchased on credit) against possible risks. In connection with the introduction of this law, no one has the right to refuse mortgage insurance.
Refusal from this type of insurance may cause a refusal to lend. Some banks are ready to offer alternative programs. For example, some ask for insurance exclusively for structural elements, while others, by significantly increasing the interest rate, do not require an insurance contract to be drawn up at all . The difference in rates can sometimes reach 10% per annum. It turns out that it is more profitable to insure your own property from mandatory risks.
Can I refuse a loan insurance through a court?
If, after signing the loan agreement, you learn about compulsory insurance, without which the bank refuses to provide borrowed funds, then you can go to court. In this case, you need to make a claim in which you need to express your own request to return the funds. Today, the imposition of optional insurance services is a common violation in the financial sector.
In court, with documentary evidence, you can return money for insurance.